Investing in Stocks That Pay Dividends | Avraham Chaim Kerendian

Few children, when asked what they want to be when they grow up, would reply that they want to be investment bankers. To children, this must seem like an incredibly mundane job. But adults know that investment bankers are generally an intelligent and savvy bunch, and everyone wants a piece of the investing action when they see how successful investment bankers can be. But, obviously, if you want to get into investment banking, you first have to learn what it means to invest and how you go about doing it. Fortunately, the general concept is relatively simple and easy to grasp.

Investing in Stocks That Pay Dividends | Avraham Chaim Kerendian

Investing is the act of committing money to purchase financial instruments such as stocks, bonds, bills, and the like, in order to receive profitable returns of some sort. Your investment can be as simple as a savings account or as risky as a stock that might soar one day and plummet the next. The type of financial instrument you choose to invest in will usually depend on how much of a risk you are willing to take in order to get a bigger return on investment. Typically, instruments with lower risk factors also yield less, but have less potential for great loss. High-risk instruments have potential for great gain, but there is an equal potential for great loss.

It’s important to always conduct extensive research on a financial instrument before investing in it. Investments are difficult enough to manage without the added risk and worry of flying blind because you don’t know what you’ve even invested in. You want to make sure that you understand an instrument fully before you apply your hard-earned money to it. Before committing to an instrument, take a look at its risk profile, its yield history, and any recent news in regard to the company that might affect your potential investment’s value.

Ultimately, if you decide not to invest your money, then you’re essentially guaranteeing that the money you have will never work for you. However, if you take the steps to begin investing it, you may take a small risk of losing your principle investment, but you also gain the potential of striking it rich, if you’re able to find a good, solid investment vehicle that you feel comfortable with. It will always help to hedge your bets with good research, but sometimes, it’s the very risk of losing it all that makes winning at the stock market game such a thrill.